With interest rate running at 3.875% level for 30 year fixed loan, many people are doing refinace over the past few months. Appraisal value has become a hot topic as it could impact the rate you get or even kill your refinance.
Appraisal is appraiser’s opinion of your home value. The regulation prevents loan agent from talking to appraiser. All the communication needs to go through appraisal management company. However, there are still a few things home owner can do which could contribute positively to the appraisal value. Here are the list:
1. Prepare comparables. Find out prices of houses sold within six months which are comparable to your house in terms of size, condition, school and nearby your house. Compile them into one list and give it to appraiser the day your house is inspected. Nobody knows your neighborhood more than you are. Appraiser may not know those subtile difference in the neighbors that could impact the price. By doing so, you help appraiser to draw a more accurate opinion of your home value.
2. Give appraiser a list of upgrades you did and how much you paid for those upgrades.
3. Make the home clean and organized on the day of inspection. First impression is important. This helps to put your home in a better condition status.
4. If there is any visible issue, get it fixed first. Leaking roof, visible water stain, broken window, these not only hurt your value, they could also slow down your loan approval as lenders will ask you to get them fixed first and have appraiser to come back to inspect it again. Appraiser’s second trip could cost you more appraisal fee. If you are buying short sale or REOs, you want to make it clear with sellers who will take care of the repair before your loan gets approved in the offer negotiation phase.
